Now Reading: Gold cash deals boom as import duty rise fuels informal market
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Gold cash deals boom as import duty rise fuels informal market
The Story in Brief
Indians are increasingly buying gold through under-the-counter cash deals without receipts, a practice that can reduce prices by up to 6% for bulk buyers, Livemint and Times of India report, citing five people familiar with the trade. The parallel market has flourished since the government more than doubled import levies on gold to 15%, adding to a 3% GST, while gold prices remain almost 28% higher than a year ago.
A 55-year-old homemaker named Anuradha told Livemint and Times of India she bought wedding ornaments at a discount of Rs 5,000 per 10 grams without a receipt, saying, 'It was an offer I couldn't refuse.' In the cash market, traders have sourced gold at discounts of up to Rs 6,000 per 10 grams, while retail buyers can negotiate up to Rs 10,000 per 10 grams, the sources said.
The informal trade is thriving ahead of the wedding and festival season from mid-October to early March. Separately, Economic Times reports that rising hallmarking charges, now at Rs 75 per article from Rs 45, are fuelling concerns about fake purity stamps, with the All-India Gem and Jewellery Domestic Council seeking a return to the earlier rate.
Indian Opinion Analysis
Livemint, Times of India, NDTV Profit and Economic Times all carry near-identical Bloomberg wire copy focused on the cash market's growth after the import duty hike. TradingView publishes an opinion piece arguing the demand is rational and policy should adapt, not moralise. The Federal departs from the others by questioning whether rising gold sales and pawning reflect economic distress masked by GDP figures, and highlights DRI seizures. The hallmarking story in Economic Times is a separate beat on compliance costs and fraud risk. The wire outlets uniformly report the trade's mechanics without judging the policy, the opinion and critical pieces add context the straight news omits, such as smuggling data and unemployment concerns.
Coverage: 7 sources, 1 government-critical, 5 neutral, 1 opinion
Sources (7): livemint.com (neutral report), timesofindia.indiatimes.com (neutral report), ndtvprofit.com (neutral report), economictimes.indiatimes.com (neutral report), tradingview.com (opinion), thefederal.com (government critical), economictimes.indiatimes.com (2) (neutral report)
This brief was synthesised by AI from the 7 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Update, 1 October 2026: this story now draws on 7 sources.
